Minister of Energy, Industry and Mineral Resources Khalid al-Falih has dismissed speculation surrounding the cancellation of Saudi Aramco’s IPO as not true.
“The government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum. This timing will depend on multiple factors, including favorable market conditions, and a downstream acquisition, which the company will pursue in the next few months, as directed by its board of directors,” Falih said in a statement.
He insisted that the kingdom had boosted preparations for the listing.
“The government has undertaken a number of major preparatory measures including issuing a new income tax law as it relates to hydrocarbons activities, reissuing a long-term exclusive concession, and appointing a new board of directors,” he said.
He added that Aramco has completed its internal program for IPO preparedness.
“It has amended its bylaws, converted to a joint stock company, ensured that its internal segmental financial reporting aligns with potential listing venue requirements, established an investor relations function, and undertaken the first independent certification of its hydrocarbon reserves, all confirming the company’s peerless status in the industry.”
Falih hailed all the measures as “positive progress on what is a complex process,” preparing Aramco and Saudi Arabia for what will ultimately be a global landmark market offering of unprecedented quality and scale.
